Cyprus bail-out: savers will be raided to save euro in future crises, says...

[Wilikon]

http://www.telegraph.co.uk/finance/financialcrisis/9952979/Cyprus-bail-out-savers-will-be-raided-to-save-euro-in-future-crises-says-eurozone-chief.html

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced.

The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.
The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said.
"If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders."
Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

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[notbrain]

"lack of market contagion"

LOLZ. Just wait. Idiotas!

ps. this should probably go in Economics.

[BTC Books]

Wow.  Nothing like an honest thief...

[justusranvier]

Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

Translation: Because of the extreme market contagion resulting from this policy we must work quickly to seize the remaining deposits before the peasants have time to withdraw them.

[BTC Books]

Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

Translation: Because of the extreme market contagion resulting from this policy we must work quickly to seize the remaining deposits before the peasants have time to withdraw them.

Translated translation:  bitcoin, beyotches!

[freespirit]

Check this out, after what they have done with people's money, now the government of Cyprus issues warnings that Bitcoin is not safe!!! LOL http://cyprus-mail.com/2014/03/18/authorities-warn-over-use-of-bitcoin/

[cr1776]

Check this out, after what they have done with people's money, now the government of Cyprus issues warnings that Bitcoin is not safe!!! LOL http://cyprus-mail.com/2014/03/18/authorities-warn-over-use-of-bitcoin/

Yeah.  Let's see.  Euro/Dollar loss of value in the last 5 years, 15-20%. 

Bitcoin LOSS of value in the last 5 years, 2 months, no loss.  Huge % gains.

Hmmmm...who do I trust, politicians or math?   That is sure a no-brainer.

[Dr.Zaius]

How have savers been raided exactly?

When they deposited their funds they essentially lent them to the bank, which then lent them to the government of Greece. The government of Greece squandered the funds on capital destroying projects. Interest was being paid out to "savers" all this time, and nobody cared or questioned where the interest was coming from. "Savers" were doing no such thing as saving, they were openly financing the destruction of real capital.

The double entry bookkeeping system has a hard time seeing these losses accrue in real time. Hence when losses are realized, it happens all of a sudden, as the bonds backing the deposits evaporated. How could Greece repay bondholders when they did not create a new income stream to repay the debt with? Bitcoin's tripple entry accounting system allows for immediate transparency. 

Sorry guys, in this credit system we live in saving is impossible, as every deposit is backed by a government bond. Meaning the funds have already been spent. Nothing is saved. German and French "savers" have been financing wholesale destruction of capital for decades, it's not surprising they will be forced to take huge losses.

[pungopete468]

How have savers been raided exactly?

When they deposited their funds they essentially lent them to the bank, which then lent them to the government of Greece. The government of Greece squandered the funds on capital destroying projects. Interest was being paid out to "savers" all this time, and nobody cared or questioned where the interest was coming from. "Savers" were doing no such thing as saving, they were openly financing the destruction of real capital.

The double entry bookkeeping system has a hard time seeing these losses accrue in real time. Hence when losses are realized, it happens all of a sudden, as the bonds backing the deposits evaporated. How could Greece repay bondholders when they did not create a new income stream to repay the debt with? Bitcoin's tripple entry accounting system allows for immediate transparency.  

Sorry guys, in this credit system we live in saving is impossible, as every deposit is backed by a government bond. Meaning the funds have already been spent. Nothing is saved. German and French "savers" have been financing wholesale destruction of capital for decades, it's not surprising they will be forced to take huge losses.

The depositors didn't know and many still refuse to believe that this is the reality to this day...

To them, it's not a problem until it becomes a problem for them; by then they've already lost.

So, basically because there wasn't a violent mob rioting in the streets of Cyprus they pretty much don't think anybody cares anymore. They're brazen enough to admit it openly...

Great.

[devphp]

Bullish.

The only thing I am wondering is whether these savers will find courage and determination to pour some of their capital into safer assets before they are fleeced or will they wait like a frog in a slowly boiling water and let themselves become meat.